FOR IMMEDIATE RELEASE
April 2, 2026
MnSEIA, SEIA, and CCSA Issue Joint Statement on the Approval of Xcel Energy’s Capacity Connect Proposal
ST. PAUL, MN — The Minnesota Solar Energy Industries Association (MnSEIA), the Solar Energy Industries Association (SEIA), and the Coalition for Community Solar Access (CCSA) released the following statements today responding to the Minnesota Public Utilities Commission’s approval of Xcel Energy’s Capacity*Connect distributed storage proposal.
Minnesota has a proud history of grid innovation, but the approved framework for Capacity*Connect represents a significant missed opportunity. While authorized as a pilot to inform future development, the program provides no meaningful pathway to collect comparative data from third-party developers or competitive market participants. By authorizing up to 200 megawatts of utility-owned batteries with a $430 million budget, the program shifts massive financial risks onto ratepayers while shutting out scalable, cost-effective, third-party clean energy solutions. Furthermore, the proceeding failed to incorporate the perspectives of independent developers or trade associations, sidelining industry expertise on interconnection and project development.
“Although we appreciate Xcel’s creative step toward investing in the distribution system, this is a flawed model,” said Sarah Whebbe, Director of Policy & Regulatory Affairs at MnSEIA. “Giving control to just one partner leaves out Minnesota's experienced solar and storage developers. A truly fair and equitable clean energy future requires open market competition, not a closed system that sidelines local businesses. This approach will add costs and limit the options of Minnesotans who want more clean energy choices.”
Guaranteed Profits at Ratepayer Expense
With this approval, Minnesota becomes the only state to adopt a distributed storage model that forces everyday ratepayers to cover the investment risk instead of leveraging private capital. Treated as utility-owned capital expenditures, Xcel Energy will earn a guaranteed profit. As a result, this is the only approved distributed storage program in the country with a cost-benefit ratio below one—meaning the costs quantifiably outweigh the benefits.
The approval process also suffered from a lack of transparency. During the hearing, Xcel introduced updated, unvetted financial calculations without prior distribution to intervening parties, preventing comprehensive review or display of the employed methodology.
“Xcel’s distributed storage program approved by the Minnesota Public Utilities Commission unfortunately bears little resemblance to other states’ storage programs that are proven to lower energy costs and increase grid reliability,” said Andrew Linhares, Midwest Director of State Affairs at SEIA. “Competitive markets for energy storage deployment ensure that ratepayers get the best, most affordable deal possible. The Capacity*Connect program takes the exact opposite approach – shifting the financial risk of projects to captive ratepayers who will be forced to pay for these projects regardless of performance.”
A Closed Pilot and a Double Standard
Positioning this program as a "pilot" misses the mark. By locking the state into an exclusive utility-owned model managed by a single partner, Sparkfund, Minnesota deprives itself of the comparative open-market data needed to scale efficiently.
Additionally, the Commission’s decision to exempt Xcel Energy from its own standard interconnection queue—citing that standard procedures would add costs and delay projects—highlights a glaring double standard, displacing projects and undercutting the rights of those already in the existing queue. If bypassing these standard processes is necessary to make utility projects viable, those same streamlined rules must be extended to all distributed energy resources.
“Community solar and distributed storage developers have a proven track record of delivering affordable, resilient power to the grid while saving ratepayers money," said Nick Bowman, Senior Manager of Markets and Research at CCSA. “By severely limiting the opportunities for third-party developers to provide these exact same grid services for less, Capacity*Connect misses the mark. We need a modern, collaborative grid where customer-owned and third-party resources can compete fairly to deliver the absolute best value to Minnesotans.”
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Media Contacts:
MnSEIA: Megan Holz, mholz@mnseia.org, 952-715-1419
SEIA: Jacob Weinberg, jweinberg@seia.org, 703-350-3774
CCSA: Adam Guarneri, ccsa@antennagroup.com
About MnSEIA:
The Minnesota Solar Energy Industries Association (MnSEIA), a 501(c)6 nonprofit, promotes and protects Minnesota’s solar and energy storage industries. We harness the strength of our 160+ member companies at the state legislature, in the regulatory arena, and the courtroom. We Move MN Solar + Storage Forward in a unified and actionable way that establishes a vibrant sector of the clean energy economy. Find out more at www.mnseia.org.
About SEIA:
The Solar Energy Industries Association® (SEIA) is leading the transformation to a clean energy economy. SEIA works with its 1,200 member companies and other strategic partners to fight for policies that create jobs in every community and shape fair market rules that promote competition and the growth of reliable, low-cost solar power. Founded in 1974, SEIA is the national trade association for the solar and solar + storage industries, building a comprehensive vision for the Solar+ Decade through research, education and advocacy. Visit SEIA online at www.seia.org and follow @SEIA on Twitter, LinkedIn, and Instagram.
About CCSA:
CCSA is a national trade association representing over 125 community solar developers, businesses, and nonprofits. Together, we are building the electric grid of the future where every customer has the freedom to support the generation of clean, local solar energy to power their lives. Through legislative and regulatory advocacy, and the support of a diverse coalition — including advocates for competition, clean energy, ratepayers, landowners, farmers, and environmental justice — we enable policies that unlock the potential of distributed energy resources, starting with community solar. For more information, visit https://www.communitysolaraccess.org and follow the group on X (Twitter), LinkedIn, and YouTube.